posted in Technology

sanitation@sanitation@lemmy.today

Top economist warns that the AI math doesn’t make sense: 'Profits are currently being funded by investors rather than earned from customers'

fortune.com/2026/08/10/torsten-slok-ai-profit-margins-capex-oracle/
Larry EllisonFortuneTop economist warns that the AI math doesn’t make sense: 'Profits are currently being funded by investors rather than earned from customers' | FortuneThe AI boom has turned the standard profit margin model on its head, according to Apollo Chief Economist Torsten Slok—and it’s making the industry’s growth unsustainable.
bstix@bstix@feddit.dk

Replying to @⁨sanitation@lemmy.today⁩

I think AI could have a good tool for specific purposes and also a very lucrative business if only they had not thrown all that money at it.

The extreme investments forced them to roll it out prematurely over a much larger market that it could ever supply in a meaningful way.

They’re trying to force a camel through the eye of a needle.

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